APRIL 30 2014 (The Conway Bulletin) — Construction work at the turquoise domed Registan in Samarkand, listed by UNESCO as a world heritage site, has damaged a couple of the towers, media reported. Two of the madrassa’s 18th century towers have developed a lean of 8cm since work began on building an amphitheatre in the complex.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 183, published on May 7 2014)
MAY 6 2014 (The Conway Bulletin) — Looking to woo foreign investors, Kazakhstan plans to introduce various tax breaks and other benefits, economy minister Yerbolat Dossayev said. These new measures are likely to include 10-year tax breaks and visa free entry for 90 days for investors from developed countries.
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(News report from Issue No. 183, published on May 7 2014)
MAY 5 2014 (The Conway Bulletin) — The World Bank signed a framework agreement with Astana to invest a further $2.5b into small and medium sized businesses and to help reform the banking sector.
This is a strong statement of intent from the World Bank.
“We are ready to start the first project on easing the access to financing for SMEs. We are glad that our collaboration with the government has been renewed,” said a spokesperson at the World Bank’s office in Astana.
In the same week, the Asian Development Bank (ADB) also signed an agreement to join its proposed $1.6b investment with a $5.5b cash injection from Kazakhstan’s own national funds.
ADB top management described the investment as “groundbreaking” as they gathered at a summit with the government in Astana.
Their investments will be primarily focused on the development of small and medium enterprises and strengthening the non-oil sector of the economy.
Both deals are important for propelling Kazakhstan further towards its stated aim of becoming one of the world’s top 30 economies by 2050.
The world’s main financial institutions appear to believe that the Kazakh economy can achieve this, or at least can punch further above its weight.
One experienced financial professional in Almaty was more candid, however. “If the money is directed towards the development of infrastructure and the private sector, then it’s a good thing. Otherwise, it can be a waste,” he said.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 183, published on May 7 2014)
MAY 5 2014 (The Conway Bulletin) — The Temirtau steel plant in central Kazakhstan, owned by Luxembourg-based ArcelorMittal, said that it would make 1,000 workers redundant in order to cut costs.
Outside the energy sector, the Temirtau steel plant is one of Kazakhstan’s biggest industrial operations.
It’s been trying to navigate through a difficult period, though. The combination of sanctions on Iran, previously the factory’s biggest client, and the general global economic weakness combined to knock profits and it has steadily laid off workers over the past couple of years.
At the end of last year, reports surfaced that it would look to cut around 2,500 people from its workforce of about 14,500. This now appears to have been watered down.
There hasn’t been an official statement from the company but state-backed TV channel Astana quoted Dmitry Pavlov, head of human resources at the plant, saying that the work force would be cut by only 1,000 people.
Temirtau is a classic Soviet style monogorod. The plant is the heart and soul of the city and, although the job losses appear to be limited, they will still have a large trickle-down impact.
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(News report from Issue No. 183, published on May 7 2014)
MAY 6 2014 (The Conway Bulletin) – Anglo-Asian Mining, Azerbaijan’s only gold producer, signed a deal to sell its copper concentrate to Geneva trade house Industrial Minerals SA. Anglo-Asian Mining, reported to have links with the Azerbaijani elite, produces copper at its Gedabek mine.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 183, published on May 7 2014)
APRIL 29 2014 (The Conway Bulletin) — Looking for more allies in Asia, Uzbekistan plans to strengthen diplomatic ties and transport links with Bangladesh.
This Uzbek-Bangladeshi alliance, though, is based fully on business. More precisely, it is based on cotton.
An Uzbek government delegation begins a three-day visit to Dhaka, the Bangladeshi capital, on April 30. Media reported that it will open an embassy in the country, its first new embassy for several years, and re-start direct flights. Uzbekistan Airways had flown from Tashkent to Dhaka between 1996 and 2005 but dropped the route because it was a commercial flop. It is now expanding and it suits the diplomatic discourse to re-start the route.
The root cause of all this chumminess between Uzbekistan and Bangladesh is cotton. There are no historical, cultural or religious links. This is 21st century commercial diplomacy.
Cotton is one of Uzbekistan’s key exports but over the last few years it has found it increasingly hard to sell to the West. Western companies have grown more and more sensitive about Uzbekistan’s use of child labour to pick the cotton. Many Western companies imposed a boycott on Uzbek cotton, forcing Uzbekistan to look for new clients. It found these in China and Bangladesh.
Since 2012, cotton exports to both China and Bangladesh have increased enormously. Uzbekistan now supplies Bangladesh, one of the world’s biggest garment manufacturing countries, with 40% of its total cotton.
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(News report from Issue No. 182, published on April 30 2014)
APRIL 23 2014 (The Conway Bulletin) — Under pressure from persistent delays and setbacks, the North Caspian Operating Company building the Kashagan oil field in the Kazakh sector of the Caspian Sea sacked Pierre Offan, its chairman and managing director. Officials have said Kashagan may be closed for another two years while leaky pipes are replaced.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 182, published on April 30 2014)
APRIL 29 2014 (The Conway Bulletin) — For Western tourists bazaars in Central Asia are often quaint relics of bygone economies but for the local power elite they are strategic objects of political influence and profit.
This month, Tajik media reported efforts by state organs and affiliates of the ruling Rakhmon family to seize two large markets.
The larger of the two bazaars, just outside Dushanbe, was confiscated by a provincial court on April 21 following an investigation by anti-corruption authorities. It belonged to Muhiddin Kabiri, head of Tajikistan’s largest opposition party the Islamic Renaissance Party of Tajikistan.
A second bazaar, based in the country’s south-west Shahrtuz region, belonged to a local businessman.
Both bazaars employ over a thousand people. Moreover, Tajikistan’s bazaars are likely to grow in size and importance now the country is a member of the World Trade Organization — making them increasingly important strategic objectives.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 182, published on April 30 2014)
APRIL 28 2014 (The Conway Bulletin) — Officials from Chinese gold miners flew to Dushanbe to discuss deals with their Tajik counterparts, media reported. China has been boosting its presence in Tajikistan significantly over the past few years. Tajikistan needs expertise to develop its gold deposits.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 182, published on April 30 2014)
APRIL 23 2014 (The Conway Bulletin) — Azerbaijani president Ilham Aliyev officially opened a new terminal at Baku airport. The new terminal will double passenger capacity at Baku airport to 6m. The Azerbaijani authorities are pouring money into Baku, which they want to beautify and modernise.
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Copyright ©The Conway Bulletin — all rights reserved
(News report from Issue No. 182, published on April 30 2014)